Legal Question in Real Estate Law in Illinois

Theoretically, yes, but you would want to communicate with them on structuring everything correctly. Even then, you will want to watch to see that it is all handled correctly.

I would suggest, however, that you meet with a solid financial adviser to evaluate your best course to secure your financial future. In the end, your plan will not really change anything. The bank will sit on your money interest free and eventually pay taxes with it. In the interim, you will make a lower mortgage payment, but lowered by money you have already paid. Then, next year, everything will jump back unless you have the funds to again cover the escrow. It just really is not making sense to go this route. Perhaps you can pay down and modify the loan, refinance, invest or do something else that will actually work to your benefit.

99.99% NO. Prepaying your FMNA conforming mortgage typically results only in slightly lowering the total interest you will pay over the remaining life of the loan, which will be shortened by any prepayment of principal, but without renegotiating will NOT affect monthly payments. But you should (a) talk to your lender and confirm and (b) if you want to pay an attorney to look at the loan papers you should. You might have to completely refinance to lower the payments and the kind of prepayment you're talking about will have a negligible effect. As to this being the loan you took out when you bought the home, most "closing" attorneys do not get into loan papers at closing, but you could even think about having your closing attorney be the attorney

Otherwise I agree w Mr. Repay - you may be better off banking the money and offsetting monthly payments on the go as you may need to. Good luck.